Share “Oklahoma Energy briefs for Aug. 8, 2014”

Oklahoma Energy briefs for Aug. 8, 2014

Oklahoma Energy briefs for Aug. 8, 2014

Oklahoman
Published: August 7, 2014

Advertisement

Plugging In

$500M gathering project planned

An affiliate of American Energy Partners LP has entered a joint venture with Regency Energy Partners LP, which will build and operate a natural gas gathering project in Ohio. The $500 million project is being expanded by Regency and American Energy-Midstream LLC to accommodate more than 2 billion cubic feet of firm volume commitments. It includes a 52-mile trunk line capable of delivering 2.1 billion cubic feet of natural gas a day to two transmission lines. The project is expected to be completed by the third quarter of next year. Regency also will enter into a gathering agreement with American Energy-Utica LLC for gas produced in the eastern Ohio.

GE Energy, Casillas to partner

TULSA — GE Energy Financial Services has partnered with Casillas Petroleum Corp. to buy oil and natural gas reserves in southwest Kansas from Cimarex Energy Co. Terms of the deal were not disclosed. The assets include more than 500 producing wells across 14 Kansas counties. Casillas will operate the properties and serve as general partner of the partnership, with GE Energy Financial Services as the sole limited partner. “Our investment with GE allows us to grow our business through a high-upside oil and gas field acquisition, while maintaining the financial flexibility to continue to drill new wells,” Casillas President Greg Casillas said. GE Energy Financial Services has provided more than $4 billion in partnership equity for independent oil and gas companies since 1991. Its 25 partnership investments own interests in more than 3,000 wells that produce an estimated 11,000 barrels of oil equivalent daily.

EARNINGS

SemGroup Corp.

TULSA — SemGroup Corp. posted a net loss of $17.6 million, or 41 cents a share, in the second quarter due to a non-cash warrant expense and a loss on the sale of a gathering system, the company reported Thursday. That compares to a profit of $3.6 million, or 8 cents a share, in the second quarter of last year. “We are pleased with the strong contribution from our new growth projects during the quarter,” CEO Carlin Conner said. “We’re on track to meet guidance for the year and continue our growth momentum with increased volumes in our crude and gas businesses in the U.S.” SemGroup will pay a quarterly cash dividend of 27 cents a share on Aug. 28.

Rose Rock Midstream LP

TULSA — Rose Rock Midstream LP on Thursday reported net income of $15.1 million, or 41 cents a common unit, for the second quarter, up from $9.1 million, or 44 cents a unit, for the same period of last year. “Rose Rock’s second quarter was all about growth,’ CEO Carlin Conner said. “We grew our business through the acquisitions of the crude oil trucking assets from Chesapeake Energy and of the remaining one-third interest in SemCrude Pipeline, which owns 51 percent of White Cliffs Pipeline, from SemGroup.” That helped Rose Rock boost its cash distribution to 53.5 cents a unit. It is the 10th straight quarter that Rose Rock has increased its distribution.